yesterday.Late yesterday, Dan Miles, a seionr communications adviser to Flaherty, admitted that federal contracting rules had been broken."Administrative functions were not followed with respect to contracting, but those procedures are now being followed," Miles said in an email in response to questions from the Star.The confirmation of the untendered communications contract was included in information provided to the New Democrats through an Access to Information request, which also revealed that an untendered $24,900 contract $100 below the required tender level was given to Sara Beth Mintz, a vice-president of the Ontario Progressive Conservative Party.The Toronto lawyer was paid for "analysis, assessment and advice" to Flaherty and staff, the documents given to the NDP show."What's going on here? This just looks exactly like what the Conservatives went after (former Liberal prime minister) Paul Martin for (with) all the single-source contracts to Earnscliffe," Angus said, referring to Earnscliffe Strategy Group, a government relations and strategic communications firm.On March 29, 2004, then opposition Conservative MP Monte Solberg assailed the Liberal government: "I think it breaks (Canadians') heart when they see their tax dollars go to the finance minister, who then turns around and gives it to his friends in the form of untendered contracts."MacPhie, who supported Flaherty in his failed bid to lead the Ontario Tories, said his firm lived up to requirements of the contract, which included providing a communications strategy. He declined to answer a series of questions."We worked very hard and provided value for money to the federal Department of Finance, as we do in all client engagements we undertake," MacPhie said in an email statement."MacPhie and Company had already worked extensively on the government's long-term economic plan, Advantage Canada. Through this work, we gained a unique and extremely detailed content knowledge of the government's economic plan, which was the foundation for Budget 2007."In fact, the original contract was for $98,580, but MacPhie then billed for another $24,000.Angus said it is clear that Flaherty is "using taxpayers' money to help out a lot of Conservative friends and they are basically breaking the rules to do it."He said it is particularly galling because the Conservatives ran in the last election on a promise to end the patronage and special deals."Now they are giving these untendered contracts to the old Mike Harris gang," he said.